Announcement of Entry of Share Offering into the Exchange for Trading for China Guangfa Bank Co., Ltd. in 2020

According to the Resolutions Passed At the fourth Meeting of the Ninth Board of Directors of China Guangfa Bank Co., Ltd., and the Resolutions Passed At 2021 First Extraordinary General Meeting of China Guangfa Bank Co., Ltd., China Guangfa Bank Co., Ltd. (hereinafter referred to as the "Bank") will issue additional shares (the “Issuance”) not exceeding the equivalent of RMB 40 billion, so as to maintain the sustainable and stable development of the business.

Recently, the Bank has received the economic behavior approval reply issued by China Life Insurance (Group) Company based on the approval opinions issued by the Ministry of Finance, in which this Share Offering requests to be conducted by way of Exchange for Trading, which means information disclosure shall be made by a qualified equity exchange at or above the provincial level and investors (including shareholders and prospective investors) shall be solicited for this Capital Increase.

In accordance with relevant regulatory requirements, the Bank chooses China Beijing Equity Exchange (the "CBEX") to be the equity exchange for this issuance and makes the announcement of this Share Offering on 6 April 2021. Matters relating to this transaction on the equity exchange are hereby explained as follows:

ⅠBackground of this share offering

According to the (Cai Jin [2019] No.130) issued by the Ministry of Finance, the capital increase of a state-owned financial enterprise shall in principle disclose information publicly at an equity exchange institution qualified at or above the provincial level to solicit prospective investors. The Share Offering is to be conducted on an equity exchange and to complete state-owned assets supervision procedures based on the examination and approval opinions issued by the Ministry of Finance on the Share Offering so as to facilitate the progress of this Share Offering by the Bank

Based on the relevant authorizations by the shareholders' meeting and the Board of Directors, the Bank makes adjustments to the specific implementation plan of the Share Offering based on the requirements for the Share Offering, reserves the pre-emptive right of shareholders under the Pro Rata Capital Increase, ensures the rights of shareholders. The transaction of the equity exchange will not materially affect the rights of existing shareholders.

Ⅱ. IIssuing Plan of Additional Shares

     The transaction of an equity exchange is required to solicit qualified investors who are willing to make investment in a public way. This Share Offering shall be conducted by way of trading on an equity exchange. Investors who intend to participate in the share offering are required to submit investment application and relevant materials to the CBEX and pay relevant deposit in accordance with the capital increase announcement published by the Bank on the CBEX (URL:http://www.cbex.com.cn/xm/qyzz/zspl/202104/t20210406_78641.html), and shall be qualified to participate in the Share Offering only after the completion of registration procedures as follows::

1. As required by the CBEX, the investors shall submit relevant materials of investment applications. The investment application and relevant materials submitted by the investors may be used for information registration by sending an electronic scanned copy of the same in advance, provided that the CBEX will ultimately determine the paper copy materials received by the CBEX. Please refer to the CBEX's announcement or contact the CBEX to ask for information about required documents and the way of submission;

2. The deposit paid by the investors for their participation in the transaction shall be paid at 1% of the payable amount, in which the maximum is RMB2 million (including RMB 2 million). The deposit shall be paid to the designated account of the CBEX prior to 17: 00 on the deadline for making the announcement (subject to the time of disclosure of information). Any failure to pay the deposit within the specified time limit will be deemed as a waiver of its investment qualification. Please refer to the capital increase announcement of the CBEX for the rules of the deposit refund.

In accordance with the provisions of the , the shareholders who have submitted the materials of subscription intent to the CBEX are still required to submit an investment application to the CBEX and pay the deposit in accordance with the requirements of the aforesaid capital increase announcement.

For any problems of operations during procedure, please contact CBEX.

. Important Notice of Entry of Share Offering

1. Investors who intend to participate in the subscription shall complete the relevant procedures as soon as possible. In accordance with Article 7 of the , the announcement of the transaction at the CBEX will last for at least 40 working days, and whether the announcement period will be extended upon expiry of the 40-working day announcement period will depend on whether the total amount of proposed investment from shareholders and prospectiveinvestors meets the expected scale of capital raising upon expiry of the 40-working day announcement period. After the expiration of the capital increase period, if more than 35 qualified prospective investors are solicited, the Bank will conduct a selection of the prospective investors and the specific selection criteria shall be subject to the capital increase announcement.

2. Investors are allowed to make multiple rounds of quotations. During the process of investment application, the investors may make multiple quotations based on actual conditions and the final quotation shall be abide. After the inquiry results of the transaction are basically determined, all qualified Investors shall be informed and the final subscription price shall be confirmed.

During the process of subscription, the investors may contact the Bank for any other questions regarding the capital increase plan and may contact the CBEX for any other questions regarding the share trading process, the application materials, and the payment of cash deposit.

. Contact Information

1. China Guangfa Bank Co., Ltd.

  Address: 30/F Office of the Board, Guangfa Building, No. 713 Dongfeng East Road, Yuexiu District, Guangzhou, Guangdong Province

  Facsimile: 020- 87311722

  Email: bodoffice @ cgbchina.com.cn

  Contact Person:

  Miss Li Tel: 020- 38322433

  Mr. Yan Tel: 020- 38322552

  Miss Su Tel: 020- 38327687

  2. China Beijing Equity Exchange:

  Official Website: http://www.cbex.com.cn/

  Address: 17A Finance Street, Xicheng District, Beijing

  Facsimile: 010- 66295588 ext 5605

  Email: xdzhang @ cbex.com.cn

  Contact Person: Zhang Xingdong

  Tel: 010- 66295605..

. Other Matters

The Bank has notified the investors of entry of Share Offering into the exchange for trading by mailing a notice and notifying an announcement on official website. The investors shall afford the expenses and losses if the investors cannot carry out the share offering procedure in timely manners resulted in inability to participate in this capital increase. The Bank shall reserve the right to interpret this Announcement

 

Hereby Noticed.

 

China Guangfa Bank Co., Ltd.

8 April 2021